News & Commentary August 18, 2023 ordinance mandating higher compensation for rideshare drivers

[Omaha Steve]

By Greg Volynsky

Greg Volynsky is a student at Harvard Law School.

In Today’s News & Commentary, the Minneapolis City Council approves ordinance mandating higher compensation for rideshare drivers, Bloomberg Law explains how major fast food corporations are complacent in franchisees’ labor law violations, the New York Times reports on a wave of assertive union leadership, and a crackdown on wage theft and working hours violations.

On Thursday, the Minneapolis City Council approved an ordinance mandating improved compensation and enhanced protections for rideshare drivers in the city. Despite opposition from Uber and Lyft, who threatened to cease operations in Minneapolis, the policy was passed with a 7-5 vote. This new regulation sets a pay rate for drivers at $1.40 per mile and 51 cents per minute, with provisions for yearly adjustments mirroring city’s minimum wage changes. Mayor Jacob Frey, while expressing support for increasing driver pay, has voiced concerns about the policy, echoing Lyft’s claims of exorbitant ride costs and possible service withdrawal. If the Mayor vetoes the bill, the City Council would need nine votes to override.

Rebecca Rainey of Bloomberg Law highlights that major fast food corporations often sidestep joint employer liability by omitting explicit labor standards from franchise agreements. This ambiguity leaves room for child labor violations, as franchisors decline to exercise their power over franchisees. Since the start of the Biden administration, the US Labor Department’s Wage and Hour Division has reported over 30 child labor breaches involving franchises such as McDonald’s, Sonic Drive-In, and Dunkin’ Donuts.

FULL story: https://onlabor.org/august-18-2023/